Potential Fees for Hard Money Loans compared to RTX’s typical fee structure
Hard money loans often come with a variety of fees, which can vary significantly between lenders. Here's a breakdown of potential fees and their typical ranges as compared to REAL Texas Capital’s typical fee structure:
Upfront Fees
· Origination Fee: A percentage of the loan amount charged by the lender to process the loan.
Typical Range: 1% to 4% of the loan amount
REAL Texas Capital Typical Range: 2%-3%
· Points: Similar to origination fees, expressed as a percentage of the loan amount.
Range: 1 to 3 points (each point equals 1% of the loan amount)
REAL Texas Capital: NONE
· Appraisal Fee: Covers the cost of assessing the property's value.
Range: $300 to $1,000
REAL Texas Capital: NONE
· Title Search and Insurance: Fees associated with verifying property ownership and protecting the lender's interest.
Range: Varies widely based on property value and location
Typically paid by Borrower who purchases the Title Insurance Policies
· Closing Costs: General administrative fees associated with finalizing the loan.
Range: $500 to $2,000
REAL Texas Capital: NONE
Ongoing Fees
· Interest Rate: Typically higher than traditional mortgages due to the increased risk.
Range: Varies widely based on market conditions and lender risk assessment
REAL Texas Capital Current Range: 12% - 14%, depending on risks of loan
· Prepayment Penalties: Some lenders charge a fee if you pay off the loan early.
Range: Varies by lender, typically a percentage of the prepayment amount
REAL Texas Capital: NONE
Other Potential Fees
· Underwriting Fee: Covers the lender's costs for evaluating the loan risk.
Range: $250 to $750
REAL Texas Capital: $450
· Document Preparation Fee: Covers the cost of preparing loan documents.
Range: $250 to $750
REAL Texas Capital: $500
· Courier Fees: For delivering documents.
Range: $50 to $100
REAL Texas Capital: NONE
· Wire Transfer Fees: For transferring funds.
Range: $25 to $75
REAL Texas Capital: $50
· Pest Inspection Fee: If required by the lender.
Range: $200 to $500
REAL Texas Capital: NONE
· Loan Servicing Setup Fee: Fee to set up third-party loan servicing.
Range: $100 to $300
REAL Texas Capital: We service our loans without any additional fees
· Legal Fees: If required for specific circumstances.
Range: Varies based on complexity and legal work involved
REAL Texas Capital: NONE
